New Tax Regime FY26: How Much Will You Take Home Monthly If Your CTC is ₹8 LPA? 

When you’re offered a ₹8 lakh per annum CTC, it doesn’t mean you’ll receive that amount in cash. Your actual take-home depends on how your salary is structured—especially basic pay, allowances, and deductions like EPF and tax. Let’s walk through the breakdown. 

Components of ₹8 LPA CTC 

Your CTC (Cost to Company) includes various parts: 

• Basic Salary: Typically, 40–50% of CTC. At 50%, that’s ₹4,00,000 annually or ₹33,333 monthly. 

• HRA (House Rent Allowance): For metro cities, it’s usually 50% of basic pay. So, ₹2,00,000/year or ₹16,667/month. 

• Other Allowances: The balance amount—₹2,00,000/year—is split between special allowances, LTA, or other company-specific perks. 

Key Deductions 

Not all of your gross pay hits your account. Here are the standard deductions: 

• EPF Contribution: 12% of your basic salary → ₹4,000/month 

• Professional Tax: Varies by state but is usually between ₹200 to ₹2,500 per month, assumed here as ₹200/month 

Tax Relief for Income Up to ₹8 Lakh in Budget 2025-26 

In the Union Budget 2025-26, the government introduced zero tax on income up to ₹12 lakh, applicable only for those choosing the new tax regime in FY 2025-26. Despite the tax exemption, individuals must still file an income tax return (ITR), as the benefit is provided through a tax rebate under Section 87A of the Income Tax Act, 1961. 

Monthly Salary Calculation 

Let’s break this down: 

• Basic Salary: ₹4,00,000/year → ₹33,333/month 

• HRA: ₹2,00,000/year → ₹16,667/month 

• Other Allowances: ₹2,00,000/year → ₹16,667/month 

Total Gross Monthly Salary is a sum of Basic, HRA, and other Allowances. 

Deductions: 

• EPF: ₹4,000/month 
• Professional Tax: ₹200/month (varies by state) 
• Total Deductions: ₹4,200/month 

Net Monthly Take-Home Salary  

Final Monthly In-Hand Salary would come up to ₹62,467, i.e., Gross Monthly Salary minus total deductions. 

Utilising Online Salary Calculators 

For precise calculations, you can use online salary calculators. These tools allow you to input your CTC and provide detailed breakdowns of your salary components and deductions based on your individual situation. 

Also Read: ITR Filing 2025: What 80C, 80D, and 24B Mean for Your ITR. 

Conclusion 

Your actual take-home pay will depend on the structure of your compensation package, applicable deductions, and how you choose to plan your taxes. Using online salary calculators can give you a more accurate estimate tailored to your financial situation. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.